Windows Photo Viewer Squished/Compressed Images

Alright I've never had problems with photo viewer until I switched to Win 7 starting with the beta until the rtm build.

But this has to be one of the strangest bugs I've experienced with photo viewer.
Apparently, certain images become squished or very compressed either horizontally or vertically when viewed in windows photo viewer. The thumbnails appear correctly, and if the image is opened with any other photo viewer such as mpc they appear in full resolution as normal. Thus the images aren't corrupt as I initially thought.
So next I thought it must be my hard drive going to shit somehow, but I've tried this on multiple drives even with a brand new drive; not the case.

The selection of which images appear squished/compressed appears to be random (as well as the degree of squishedness/compression), but once the image appears as squished in photo viewer it stays that way no matter if it is moved to a different drive or resaved, etc.

Anyone got any thoughts on this; what's the problem; how to fix it?

Basically THIS: Windows7 Photo viewer compresses my jpgs to a vertical line
Also included what's happening in my case.